IndexIQ: Hedge Fund Replication Strategies Fare Well in June

Jul 15 2016 | 11:45pm ET

Four of six investable hedge fund replication indices from IndexIQ posted positive performances during June, despite the month’s turbulent finish.

Gainers were led by a 1.16% return by the IQ Hedge Market Neutral Index, while decliners were paced by a -1.49% drop in the IQ Merger Arbitrage Index.

Index returns through June 30, 2016 were as follows:

  Ticker 1 Mo. 3 Mo. YTD 1 Year
IQ Hedge Multi-Strategy   IQHGMS 0.72% 1.42% 2.93% 0.42%
IQ Hedge Market Neutral   IQHGMN 1.16% 2.10% 3.95% 3.06%
IQ Hedge Global Macro   IQHGMA 0.73% 0.21% 2.11% -0.41%
IQ Hedge Event Driven   IQHGED 0.90% 1.84% 3.39% 2.11%
IQ Hedge L/S IQHGLS -0.37% 1.60% 2.25% -1.14%
IQ Merger Arbitrage   IQMNA -1.49% -1.20% 1.78% 0.72%


Designed as investable benchmarks that replicate the performance characteristics of sophisticated hedge fund strategies, the IQ Hedge series of indexes were originally introduced in 2007. They are now used as the basis of investment products worldwide, as well as benchmarks for advisors and hedge fund managers. “The Brexit vote caught everyone by surprise, and was yet another reminder of the role liquid alternatives can play in portfolio diversification,” said Adam Patti, CEO at IndexIQ. “An investor can maintain a comfortable level of market exposure while keeping some downside protection in place, an approach that proved its merit in the volatile days that brought June to a close.”

Rye, NY-based IndexIQ, bought by the asset management arm of insurance company New York Life in December 2014, is an issuer of liquid alternative products offered as indexes, ETFs, mutual funds, SMAs and model portfolios.

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